Sri Lanka: Selected Issues
IMF Staff Country Reports, June 13, 2024
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- Sri Lanka: Selected Issues
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Bibliographic details
- Published: June 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400279492.002
Overview
- Publication date: June 13, 2024
- Purpose: Quantify the economic benefits of comprehensive governance reforms in Sri Lanka through model simulations, supported by selected case studies.
- Focus areas: corruption vulnerabilities and governance weaknesses in Sri Lanka; channels through which governance reforms generate economic gains.
Methodology and Simulations
- Theoretical framework: Illustrates channels linking governance reforms to economic gains.
- Quantitative approach: Uses a dynamic general equilibrium model to simulate the macroeconomic impact of governance reforms.
- Scenario analysis: Simulates alternative reform scenarios (details of scenarios and quantitative outcomes are in the paper).
Case Studies and Political Economy
- Complementary evidence: A section of the paper presents selected case studies in Sri Lanka to support simulation findings.
- Political economy insight: Support from the highest political level is crucial for durable success of governance reforms.
- Distributional challenge: In countries with widespread corruption, many groups may feel that they are benefitting from it, complicating reform implementation.
Key Themes and Subject Areas
- Subjects: Corruption, Crime, Fiscal governance, Fiscal policy, International organization, Monetary policy, Revenue administration, Revenue administration transparency and accountability
- Keywords: Corruption; corruption vulnerability indices; Fiscal governance; Global; governance reform; governance weakness; growth impact of governance; mapping governance; Revenue administration transparency and accountability
Findings, Policy Implications, and Use
- Findings: The paper aims to quantify macroeconomic gains from governance reforms through theory, model simulations, and case studies (specific quantitative results are provided in the paper).
- Policy implication: High-level political backing is essential to ensure reforms are durable and to overcome entrenched beneficiaries of corruption.
- Intended audience/use: Policymakers, researchers, and practitioners interested in governance reform, fiscal and monetary policy, and revenue administration in Sri Lanka.
Content in this bundle
- Sri Lanka: Selected Issues; IMF Country Report No. 24/162; May 29, 2024